Assuming MGM stock can hold the $23.50 area and the company can repurchase shares from there, it would be able to do something relatively unique when it comes to buybacks: getting the shares at favorable prices.<\/p>\n
Companies are often criticized for committing to buyback plans when their share prices are high while eschewing the practice when stocks prices dramatically decline.<\/p>\n
Major companies have continued to do buybacks in boom periods when stock prices have been high, rendering these businesses more financially fragile in subsequent downturns when abundant profits disappear,\u201d according to Harvard University.<\/p><\/blockquote>\n
For example, the previous bull market peak in buybacks occurred in 2007. But the dollar amount of repurchases by S&P 500 firms plunged in 2008 and 2009 during and immediately following the global financial crisis.<\/p>\n
Analysts widely expected MGM to allocate some cash to shareholder rewards due to the $8.2 billion in cash it garnered via the sales of the Bellagio, Circus Circus, MGM Grand, and Mandalay Bay<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"MGM Resorts International (NYSE:MGM) could be looking to take advantage of recent weakness in its stock by adjusting the purchase prices for a recently announced $1.25 billion share buyback plan. The operator of the Bellagio and the Mirage, among other Las Vegas Strip venues, recently said the share repurchase program will be executed at prices […]<\/p>\n","protected":false},"author":46,"featured_media":128797,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[62,10],"tags":[],"acf":[],"yoast_head":"\n
MGM May be Able to Get Favorable Prices in its Share Repurchase Plan<\/title>\n\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\t\n\n\n\n\n\n\t\n\t\n\t\n